10 Important AI Announcements for Investors

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1. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 286

Amazon.com, Inc. (NASDAQ:AMZN) is a leading technology company known for its e-commerce services and offers a full range of AI tools, including custom processors and Amazon Bedrock to support AI development.

TD Cowen analyst John Blackledge is optimistic about Amazon’s (NASDAQ:AMZN) prospects in 2025, naming it his top large-cap pick for 2025, as per CNBC. His positive outlook is based on several key factors. First, he expects continued margin growth, with operating income forecasted to reach $85.6 billion, driven by the expansion of AWS and Advertising, as well as better e-commerce margins. Second, AWS revenue growth is anticipated to accelerate to 21% in 2025, supported by increased enterprise workload migration and the growth of GenAI services. Third, Amazon’s cash position is projected to grow significantly, allowing for more investment opportunities.

Blackledge also believes that faster delivery speeds will help Amazon capture more market share in the low-cost goods segment. Additionally, AWS is expected to maintain strong growth, particularly in generative AI, with revenue reaching $6.1 billion in 2025 and growing to $31 billion by 2029.

While we acknowledge the potential of Amazon.com, Inc. (NASDAQ:AMZN) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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